Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — FY2022 Earnings Presentation
25 slides from Plato Income Maximiser's earnings presentation, Aug 25, 2022
Slide 1: Shareholder webinar reminder and presentation on full-year results
Plato Income Maximiser Limited (Company) Level 35, 60 Margaret Street Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au For personal use only ABN 63 616 746 215 25 August 2022 By Electronic Lodgement Market Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 Dear Shareholder, Sharehol
Slide 2: Company Full-Year FY22 Results
COMPANY FULL-YEAR FY22 RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 1
Slide 3: Disclaimer
Disclaimer Note: Past performance is not a reliable indicator of future performance. For personal use only This communication has been prepared by Plato Income Maximiser Limited ABN 63 616 746 215 (PL8). Nothing contained in this communication constitutes investment, legal, business, taxation or oth
Slide 4: Agenda
Agenda For personal use only 01 PL8 Company Update 02 Market update 03 Questions 3
Slide 5: PL8
For personal use only 4 PL8 Company Update
Slide 6: FY22 sees dividends restored
FY22 sees dividends restored For personal use only • FY22 operating loss after tax of $12.9 million, impacted by market falls in June 2022 quarter • Total dividends of $0.0655 per share, equivalent to annualised distributed yield of 7.5%4 • Monthly fully franked dividends increased from $0.0045 per
Slide 7: PL8 investment portfolio performance
PL8 investment portfolio performance PERFORMANCE TO 30 JUNE 2022 AFTER FEES AND COSTS* For personal use only Since Half-Year 12 Months Inception p.a.** Including Franking (28/4/2017) Portfolio -6.9% -3.2% 7.7% Performance S&P/ASX200 Tax -9.3% -5.1% 7.5% Exempt Excess Return 2.4% 1.9% 0.2% *Inclusive
Slide 8: PL8 delivering high income month realised yield
PL8 delivering high income 12 month realised yield* For personal use only 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% S&P/ASX 200 PL8 CASH 4.0 5.2 FRANKING 1.4 2.2 • *to 30 June 2022, Plato, Bloomberg 7
Slide 9: PL8 - underlying fund performance history
PL8 - underlying fund performance history For personal use only $400,000 Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Se
Slide 10: Delivering consistent monthly income
Delivering consistent monthly income INCREASED MONTHLY DIVIDENDS TO $0.0055 PER SHARE For personal use only MONTHLY DIVIDENDS PAID 0.6 0.5 0.4 0.3 0.2 0.1 0 Only Australian LIC paying monthly fully franked dividends Source: Plato. While monthly income has been consistent since April 2018, this may c
Slide 11: PL8 NTA performance breakdown for FY22
PL8 NTA performance breakdown for FY22 PRE-TAX NTA PER PL8 SHARE* For personal use only • Negative performance due to $1.20 decline in markets coupled with $1.133 - $0.082 dividends paid resulted in a $1.15 decline in NTA for the year. • Pre-tax NTA back at $1.04 on 12 $1.10 August 2022 - $0.001 - $
Slide 12: Share price has traded at a premium to NTA
Share price has traded at a premium to NTA For personal use only Source: Plato, IRESS. Past performance is illustrative only and not indicative of future performance. 11
Slide 13: Growing asset and shareholder base
Growing asset and shareholder base PL8 ASSET AND SHAREHOLDER BASE UP ~100% SINCE IPO For personal use only PL8 - Growth in assets and shareholder base 600.0 12,000 500.0 10,000 Net Tangible Assets ($ million) Number of shareholders 400.0 8,000 300.0 6,000 200.0 4,000 100.0 2,000 - - 5-May-17 30-Jun-
Slide 14: Market Update
For personal use only 13 Market Update
Slide 15: RBA forecasts three years of record low 0.1% cash rate
RBA forecasts three years of record low 0.1% cash rate OFFICIAL RBA CASH RATE EXPECTATIONS – EVEN LOWER FOR LONGER For personal use only Source: RBA, Plato 14
Slide 16: Official RBA cash rate + Westpac forecast
For personal use only 15 • 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 16.00% Aug-1990 14.00% Apr-1991 Dec-1991 Aug-1992 Apr-1993 Source: RBA, Plato, Westpac Dec-1993 Aug-1994 Apr-1995 Dec-1995 Aug-1996 Apr-1997 Dec-1997 Aug-1998 OFFICIAL RBA CASH RATE + WESTPAC FORECAST Apr-1999 Dec-1999 Aug-2000 A
Slide 17: Safe assets now losing you money
Safe assets now losing you money REAL AFTER INFLATION EARNINGS ON $1M For personal use only Real Earnings Term Deposits Real Earnings Bonds $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- -$20,000 -$40,000 -$60,000 -$80,000 Inflation hit 6.1% in June 2022 Source : Plato, RBA updated to 30/6/202
Slide 18: Results season February 2022 - Dividends
Results season February 2022 - Dividends DIVIDENDS UP BUT SOME RETRACEMENT FROM COVID-WINNERS For personal use only • Over $40bn in dividends have been declared, $7bn more than last year*. • Strong dividend increases: FEB 2022 CHANGE IN DIVIDENDS PCP Average Median Mkt Cap Weighted Average – South32
Slide 19: Tax effective buy-backs are very advantageous
Tax effective buy-backs are very advantageous WESTPAC BUYBACK – WORTH 12% AFTER TAX FOR ZERO TAX INVESTORS For personal use only • A$3.5bn off market buyback - 4.6% of shares on issue • Worth 12.4% for pensioners for every share successfully tendered • Zero scale back for those investors tendering a
Slide 20: Large Aussie income stocks
Large Aussie income stocks 7 STOCKS ACCOUNT FOR 60% OF ALL DIVIDENDS For personal use only % of Gross Dividend Income - FY22 1.40 Price Performance 1.30 1.20 BHP Group 1.10 Commonwealth Bank 1.00 Fortescue Metals National Australia Bank 0.90 Westpac 0.80 Rio Tinto 0.70 ANZ Other 0.60 0.50 28/04/2017
Slide 21: Largest Contributors to Income
Largest Contributors to Income YEAR TO 30 JUNE 2022 For personal use only Top 10 Contributors to Excess Income Investment Reasoning (Last 12mths) Excess Income Return Capital Income Stock Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Large yield, total return took a hit during Q3, 21 as Fort
Slide 22: Dividend Traps
Dividend Traps YEAR TO 30 JUNE 2022 For personal use only Dividend Traps Investment Reasoning Div’d Cut Return Stock Date of Divd Yield Runup Value Momentum Reasoning (%) (%) Even though it is benefiting from strong sales in Kogan Aug-21 -100% -16.6 P O O O pandemic environment, Kogan mis-managed it
Slide 23: Dividend cut outlook rising but still within normal range
Dividend cut outlook rising but still within normal range AVERAGE % CHANCE OF DIVIDEND CUTS FOR AUSTRALIAN MARKET For personal use only Div Cut Probability - Australia 31 December 2001 - 30 Jun 2022 50% 45% 40% 35% 30% 25% Long term average 20% 15% 10% 5% 0% 200112 200212 200312 200412 200512 200612
Slide 24: The income summary
The income summary For personal use only Bad news: Interest rates at historic lows but expected to rise – term deposit rates low but rising interest rates will challenge asset prices Good news: Dividends have rebounded strongly – Plato dividend cut model rising but within normal range – Strong divid
Slide 25: Thank you - Questions
For personal use only 24 THANK YOU Questions
Plato Income Maximiser — FY2022 Earnings Presentation on 6ix